Job family structures and informal structure types

Covering the final two structure types addressed in the 5HR03 unit on grade and pay structures, this video focuses on job family structures and the informal end of the structural spectrum. Job family structures are examined in terms of how they organise roles by function, discipline, or occupation rather than through a single organisation-wide hierarchy, with the Finance and Engineering functions used as concrete illustrative examples. The video looks at how pay ranges within each family can reflect occupational market rates and support career pathways within specific disciplines, and it addresses both the advantages of this approach and the complications it can introduce.

The video then turns to two informal structure types covered under AC 2.1: spot rates and individual job grades. Spot rates — sometimes referred to as spot salaries — are examined as fixed, single-point pay arrangements with no range and no scope for progression within the role. Individual job grades are treated as the most flexible and least structured of all the approaches discussed across this series, with attention to the contexts in which each informal type tends to appear, including entry-level roles, senior executives, and scarce specialists, alongside the governance and fairness risks each carries.

The closing section addresses the practical question of choosing between structure types, drawing on factors such as organisational size, sector, culture, and workforce composition. Taken alongside the earlier videos in this series covering multi-graded, broad-graded, and broad-banded structures, this video completes the AC 2.1 coverage of formal and informal grade and pay structure types, positioning job families and informal approaches within the broader framework an HR professional would need to understand when making structural recommendations.